FAB" submits a non-binding offer for EFG Hermes"

• Non-binding offer for a minimum of 51% of the outstanding share capital of EFG Hermes, that is subject to due diligence and regulatory approvals from the relevant authorities in Egypt and the UAE

• Indicative all cash offer price of EGP 19.00 per share, valuing EFG Hermes at EGP 18.5 billion (USD 1.2 billion), representing a premium of 21% to the closing price on 08 February 2022

• Intention to launch a mandatory tender offer following the satisfactory outcome of the due diligence process

• Potential transaction is in line with FAB’s long term strategic ambitions, and beneficial for both parties providing enhanced scale, specialisation and significant revenue synergies in investment banking

First Abu Dhabi Bank (FAB) today announces that it has submitted a non-binding offer for a potential cash acquisition of a majority stake in Egyptian financial services institution EFG Hermes Holding S.A.E. (EFG Hermes).

 The non-binding offer for a minimum of 51% of the outstanding share capital of EFG Hermes, is subject to due diligence and regulatory approvals from the relevant authorities in Egypt and the UAE.

 Following the satisfactory outcome of the due diligence process, FAB intends to make a mandatory tender offer in accordance with applicable laws and regulations, In its non-binding offer to the Board of Directors of EFG Hermes, FAB has indicated an all-cash offer price of EGP 19.00 per share.

The offer values EFG Hermes at EGP 18.5 billion (USD 1.2 billion) and represents a 21% premium to EFG Hermes’ closing price of EGP 15.74 on 08 February 2022, The offer price also represents a premium of 32%, 40% and 48% respectively over the three-month, six-month and twelve-month volume-weighted average price.

Headquartered in Cairo and listed on the Egyptian Exchange (EGX), EFG Hermes is a leading diversified financial services institution serving frontier emerging markets, with a strong track record of over 35 years and an outstanding reputation across regional and international markets.

EFG Hermes is recognised for its strong management team, high standards of corporate governance and its strong brand. The company is an all-encompassing financial institution, spanning investment banking, non-bank financial services, fintech and commercial banking.

As of 30 September 2021, EFG Hermes’ total assets were EGP 49.6 billion (USD 3.2 billion), with a net profit of EGP 1,054 million (USD 67 million) for the first nine months of 2021. FAB believes that the non-binding offer represents an attractive liquidity event and a compelling value proposition for EFG Hermes’ shareholders, reflecting the company’s robust fundamentals, and strong future growth prospects. This potential transaction would represent a significant milestone for FAB, in line with the bank’s long term strategic ambitions to become the reference institution for investment banking in the region.

It provides enhanced scale, specialisation, growth levers and revenue synergies, strengthening FAB’s offering and regional presence, This potential transaction will build on EFG Hermes’ strong investment banking capabilities, track record and reputable brand. Additional details with regards to the due diligence process or the potential transaction would be provided to the market in due course.